What was the amount of deferred tax liabilities, as restated, for Clear Pest Pros?

According to Clear Pest Pros's 2025 Franchise Disclosure Document, the restated deferred tax liabilities as of December 31, 2022, was ($3,001). This figure represents the net amount after considering both deferred tax assets and deferred tax liabilities. Deferred tax liabilities generally arise from temporary differences between the book value of an asset or liability and its tax basis. These differences will result in taxable amounts in the future when the asset is recovered or the liability is settled.

For a prospective Clear Pest Pros franchisee, understanding deferred tax liabilities is crucial for assessing the financial health and stability of the franchisor. A significant deferred tax liability could indicate that the company has used accounting methods that defer tax payments to later periods, which might impact future profitability. Conversely, deferred tax assets can be used to reduce future taxable income, providing a potential benefit.

It is important to note that the deferred tax liabilities can fluctuate based on various factors, including changes in tax laws, accounting practices, and the company's financial performance. Therefore, franchisees should consult with a financial advisor to fully understand the implications of deferred tax liabilities and how they might affect their investment in a Clear Pest Pros franchise. Reviewing the complete financial statements and related notes in the FDD will provide a more comprehensive view of the company's tax position.